STR Fees Increase as More Convert to Long Term Rentals
Charles Phanumphai • January 13, 2025
Why More Cities in Grand County Are Adding STR Pressure—And Why Homeowners Are Shifting to Long-Term Rentals
In recent years, cities and towns across Grand County, Colorado, have increased pressure and costs on short-term rental (STR) homeowners and operators. This trend reflects a broader effort to manage the impact of STRs on communities while addressing housing affordability issues. One recent example is the Grand Lake Board of Trustees’ decision to raise fees and deposits for various licenses, including nightly rental licenses, starting in 2025.
Fee Increases in Grand Lake
The new fee structure for nightly rental licenses in Grand Lake represents a significant cost hike for STR operators. While the one-time application fee remains unchanged at $165, the annual license fees have increased considerably. Here’s a breakdown of the updated fees based on occupancy levels:
1-3 Occupancy: $700 per license
4-6 Occupancy: $900 per license
7-10 Occupancy: $1,100 per license (a 22% increase from $900 in 2024)
11+ Occupancy: $2,000 per license (a newly added tier)
These fees must be paid annually to renew a nightly rental license and maintain compliance with local regulations. According to Grand Lake Treasurer Heike Fawkes, revenue from these fees funds the town’s general operations, attainable housing initiatives, program advertising, code enforcement, and other administrative costs. In 2024, the town collected approximately $84,000 from nightly rental licenses, and that figure is expected to rise in 2025 due to the fee increases.
Why Are Fees Increasing?
Under municipal codes, towns like Grand Lake have the authority to update fees to offset the direct and indirect costs of administering STR programs and mitigating their impacts on the community. These impacts include:
Strain on Housing Availability: STRs often reduce the availability of long-term rentals, contributing to a housing shortage for residents.
Community Concerns: Increased tourist activity can lead to noise complaints, parking issues, and other disruptions.
Administrative Costs: Running STR licensing programs requires funding for advertising, enforcement, and compliance monitoring.
The Shift Toward Long-Term Rentals
As STR costs rise, many homeowners who are barely covering their expenses are reevaluating their options. Here’s why more homeowners are making the shift to longer-term or seasonal rentals:
Rising Costs and Complexity: Higher fees, stricter regulations, and increased administrative burdens make STRs less financially appealing.
Stable Income: Long-term rentals provide a consistent income stream without the seasonal fluctuations of STRs.
Reduced Oversight: Managing a long-term rental typically requires less oversight and fewer resources compared to the constant turnover and upkeep of STRs.
Community Impact: Some homeowners are motivated to contribute to local housing solutions, offering their properties to residents rather than tourists.
Many of these homeowners are turning to Snow Capped Properties to manage their long-term rentals. As one of the largest—if not the largest—long-term rental companies in the Winter Park to Grand Lake area, Snow Capped Properties manages over 75 properties and is continuing to grow. Their expertise and local presence make them a go-to partner for property owners navigating the transition to long-term rentals.
Conclusion
For STR homeowners in Grand County, the financial and operational challenges of maintaining a nightly rental license are growing. As cities like Grand Lake continue to implement fee increases and other regulatory measures, many property owners are finding that transitioning to long-term rentals offers a more sustainable and community-focused alternative.
Whether driven by economic necessity or a desire to address housing needs, this shift highlights a critical moment for Grand County’s rental market. Homeowners navigating these changes should carefully evaluate their options to ensure their properties remain both profitable and aligned with community priorities.
Grand County's real estate market has shifted, and we're seeing an interesting parallel between homeowners trying to sell and those reconsidering short-term rentals.
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Charles Phanumphai, owner of Snow Capped Properties in Grand County, Colorado, recently shared insights on burnout, entrepreneurship, and long-term success in real estate. Charles explained that avoiding burnout starts with finding work you genuinely enjoy, while also intentionally creating balance through family time, travel, fitness, and experiences outside of work. As a business owner and father, he prioritizes being present with his children and setting healthy boundaries around work in the evenings. Charles’ journey into real estate began in 2000 when he purchased his first “house hack” while attending college. At the same time, he built a 20+ year career in IT and workforce management. Over the years, he combined those two backgrounds to create Snow Capped Properties — a vertically integrated company focused on long-term and seasonal rentals, property management, and real estate sales throughout Grand County. He credits much of his success to three key principles: analyzing data, taking calculated risks, and trusting the process. His IT background helped shape a data-driven mindset that allows him to make strategic decisions based on market trends, rental performance, and long-term investment fundamentals rather than emotion. He also emphasized that success did not happen overnight, but instead came through years of consistent, disciplined progress. Charles also discussed the importance of adaptability in today’s evolving real estate market and the value of building long-term relationships rooted in professionalism, transparency, and trust. For those interested in reading the full interview/article with Bold Journey, click HERE